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Fixed Book Prices – an international perspective Richard Charkin IPA President Brasilia 30 June 2015.

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Presentation on theme: "Fixed Book Prices – an international perspective Richard Charkin IPA President Brasilia 30 June 2015."— Presentation transcript:

1 Fixed Book Prices – an international perspective Richard Charkin IPA President Brasilia 30 June 2015

2 International federation of PAs 60 members in 50 countries: CBL and SNEL in Brazil The global voice for publishers: IPA provides leadership and focus IPA fights for publishers nationally, regionally and internationally International Publishers Association

3 Strong copyright Strong action against piracy Exceptions only in exceptional cases Freedom to publish Freedom of expression for authors Choice: an abundance of models Open and fair markets Access and interoperability Innovation Professionalism and high quality International Publishers Association

4 Countries currently with FBP Argentina, Austria, France, Germany, Greece, Israel, Italy, Japan, Lebanon, Mexico, Netherlands, Norway, Portugal, Slovenia, South Korea, Spain, Sri Lanka, Thailand International Publishers Association Countries that used to but don’t any more Australia, Finland, Hungary, Sweden, UK; Switzerland

5 o Each FBP country has created a different, local regime o Statute-based (France) or voluntary agreements between publishers and booksellers (Norway) o Four main objectives:  Maintaining the number and range of bookshops  Competing against online monopolies  Supporting diversity of titles  People should be able to buy books at a single price, no matter where they live in a country International Publishers Association

6 They maintain FBP does not eliminate competition, but rather shifts it from booksellers to publishers Therefore, to attract readers/buyers, booksellers will need to compete using strategies other than price Some researchers conclude that in a non-FBP market there are increased sales of bestsellers and lower prices on certain books, while in a FBP-system there is a wider selection of titles on offer But the researchers were unable to find a noticeable difference in the average selling price across the two systems International Publishers Association

7 Fixed Book Price in Israel is called ‘The law to support authors and literature’ FBP operating since September 2014 Israeli publishers very supportive Price is fixed for 18 months Now able to negotiate annual terms on discounts with booksellers, not monthly as before Average price of books has dropped from around 89 New Israeli Shekels to 67-76 NIS International Publishers Association

8 Not just an Anglo position (the Danes and Swiss recently looked at FBP and said ‘No!’) But FBP does go against a certain ‘mercantilist’ attitude to books that is strong in the Anglophone world — a book is a commodity like any other Price fixing, in principle, is a bad thing FBP is yet another example of publishers taking responsibility for the whole supply chain, when they might do better to focus on their own survival and let the booksellers evolve? International Publishers Association

9 FBP law repealed in 1972 RRP system similar to UK, USA without UK’s extremes. USA discounting tempered by Robinson Patman Act: booksellers set terms, but publish these terms and cannot deviate ‘Independent booksellers are doing well in Australia, with over 25% of total sales for a trade publisher. They are successful because they are good and because they connect very well with their communities’ R Gorman, CEO, Allen & Unwin Australian bookshop numbers have stabilised and 2014 book sales up by 2.3% (Source: Australian Booksellers Association) Australia (and USA) interesting for Brazil because of similar geography

10 1995: collapse of the voluntary ‘Net Book Agreement’, when some publishers opted out, gaining a temporary competitive advantage Independent booksellers faced increased competition over time from: Supermarkets Amazon initially selling p-books, and finally, e-books across all platforms International Publishers Association

11 Declining number of indie booksellers International Publishers Association Source: Booksellers Association of UK and Ireland

12 Fewer indie bookshops: Traditional to non-traditional (i.e. supermarkets) Physical bookshops to online Print books to e-books And sales of ‘midlist’ titles have collapsed BUT UK is still a leading publishing territory and remains a global literary and educational giant International Publishers Association

13 Copyright exceptions and IP battles in Geneva Government interference in educational publishing in Poland, Hungary, Norway, etc Competition laws Like in Brazil and UK, VAT rates on all books, globally, should be 0% IPA promotes publishing as a force for economic, social and cultural good International Publishers Association

14 Obrigado! For more information about the IPA and our policies, contact José Borghino, Policy Director: borghino@international publishers.org +41 22 704 1820 International Publishers Association


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